Liaison Office Registration
A foreign company can register a Liaison Office for representation or marketing research by obtaining permission from the Reserve Bank of India (RBI) and registering it with the ROC.
Liaison Office Registration
A liaison office or a representative office works as a communication channel between the parent company settled abroad and their parties in India. Foreign companies take liaison office registration in India to explore and support business prospects in India. Such an office acts as a communication bridge. It promotes import and export from/to India, promotion of technical and financial participation of foreign parents/group company, conducting market research, providing feedback, etc. Foreign investors appreciate the opportunity that liaison offices offer. It allows international investors to investigate the Indian market and establish a fast-growing market while limiting their financial, legal, and administrative responsibilities.
A liaison office of the foreign company can not engage in any commercial activities and the parent company shall meet all the expenses of the liaison office. A liaison office is a foreign company and Indian government taxes the profits of such entities when it carries out the transactions which amount to commercial activities through a permanent establishment (PE) at higher rates. As of now the tax on the profit of the foreign company is 40% in contrast to the tax rate @ 22% on Indian company.
Our Package inclusions
- Branch Office Registration of Foreign Company
- Documentation Support
- Filing of FNC Form to RBI through AD Bank
- Digital Signature for the Authorized Signatory
- Registration of Foreign Company with ROC
- Registration with Local Police
- PAN & TAN Number for the Company
- Bank Account Opening Support
- GST Registration
- Import Export Code (IEC)
- Government fee & Taxes on Actual Basis
- All Inclusive Professional Fee
- Out of Pocket Expenses/ Pay Govt Fee on Actual Basis
requirements to Register Liaison or Representative Office
Foreign Exchange Management Regulations, 2016 governs the establishment of a place of business for a foreign company. Therefore, it is important to fall under the criteria of the below-mentioned qualifications to set up a liaison office in India:
Process for Liaison office Registration in India
List of Documents for Liaison Office Registration
| S.No | A. Mother/Parent Company (If Applicable) | B. The Authorized Signatory |
|---|---|---|
1. | Certificate of Incorporation / Registration of Foreign Company | Colour Photo – 5 |
2. | Memorandum of Association (MOA) and Articles of Association (AOA) | Passport – 5 Copy |
3. | List of Details in respect of Directors/Key Executives | Business Visa Copy with Immigration Stamp of arrival |
4. | Details of shareholders of the applicant company | National Identity Card – 5 Copy |
5. | Net worth certificate attested by Certified Public Accountant (CPA) | Latest Address Proof (Bank Statement/ Electricity/ Water Bill/ Phone Bill) |
6. | Audited financial statement of the last Three preceding years | Board Resolution Appointing the AR |
7. | Banker’s Report from the applicant’s banker in the host country | Power of Attorney in the name of AR |
Drafting of Government Forms and Documents
On receiving the complete set of documents, the next step is to draft the following documents for the signature purpose by the applicant company and from the authorized signatory.